Map reveals eight areas where council tax could rise by up to 25% adding £320 to bills
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MILLIONS of households will see their council tax bills rise in April, but some areas could see record high hikes of up to £320 extra a year. Several councils around the UK have asked for permission to raise their levy by as much as 25%. This is considerably higher than the 5% that the government allows most local authorities to hike bills by.
Several councils have warned that increases are vital to help them balance their books next year - but requests still need to be approved by the government. Sarah Coles, head of personal finance at broker Hargreaves Lansdown, warned that councils are facing "desperate times" but that these hikes risk leaving households struggling instead.
"People are only just starting to emerge from the cost-of-living crisis and finding their feet again, so a massive council tax hike could whip the rug out from underneath them and leave them with another struggle to make ends meet," she said. The Royal Borough of Windsor and Maidenhead has applied to raise its council tax levy by an unprecedented 25%, adding £320 a year to a band D property.
This would take the annual bill from £1,671.39 to £2,089.19, excluding any extra charges from individual parishes within the borough. In a statement in December last year, the council said that if it is unable to secure this level of extra funding, it is "almost inevitable" that the council will be "effectively bankrupt".
"The draft budget includes the council’s Exceptional Financial Support request for a £60.3million loan, alongside being able to raise council tax by an additional 20% above the current limit of 4.99% set by government – reflecting the level of support needed to make the council sustainable and rectify £30million of historical accountancy errors," it said.